Use the following to answer questions:
KeithManufacturing produced three products in a joint operation. Joint costs up to the split off point were $150,000. Products H and I were processed further. Additional information is as follows:

-If the net-realizable-value method is used and product J is accounted for as a joint product, how much of the joint-costs would be allocated to Product H?
A) $106,350
B) $106,250
C) $107,143
D) $ 98,078

Question

Use the following to answer questions:
KeithManufacturing produced three products in a joint operation. Joint costs up to the split off point were $150,000. Products H and I were processed further. Additional information is as follows:
 
-If the net-realizable-value method is used and product J is accounted for as a joint product, how much of the joint-costs would be allocated to Product H?
A) $106,350 
B) $106,250 
C) $107,143 
D) $ 98,078

Quizplus · Accepted Answer

The net realizable value of Product H is $106,350, which is 50% of the total net realizable value of the joint products. Therefore, 50% of the joint costs should be allocated to Product H.

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